Finance Act 20 introduced section 115BAC concerning taxation in relation to individuals/ HUFs. The purpose was to provide these taxpayers with a beneficial tax regime where the tax rates are lower in comparison to normal provisions. However, this section is optional in nature. Moreover, opting for this section would mean giving up the benefit of certain deductions which otherwise are available like deduction under chapter VI-A, and many others. Hence, whether or not one should go for it is a matter of choice and needs to be looked into carefully.
As per Section 115BAC(5), the provisions of this section will be applicable only if the option is exercised by the due date specified under section 139(1) i.e. due date for return filing, and that too in the prescribed manner. The manner has been prescribed by way of Rule 21AG vide Notification No. 82/2020 dated 1st October 2020. Therein Form 10-IE has been mentioned.
In order to take benefit of the option, Form no. 10-IE has been notified. The same should be filled and furnished electronically. If one doesn’t desire to go for Section 115BAC then this Form will not be applicable.
